Bill Text: OR HB2007 | 2013 | Regular Session | Introduced
Bill Title: Relating to the Oregon State Lottery.
Sponsorship: Bipartisan Bill
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2007 Detail]
Download: Oregon-2013-HB2007-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1170
House Bill 2007
Sponsored by Representative KOTEK; Representatives KENNEMER,
PARRISH, TOMEI (at the request of Hayden Island Neighborhood
Network)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Deems establishment of lottery game retailer or applicant to be
casino when 50 percent or more of net income of establishment is,
or is projected to be, derived from sale of tickets or shares in
lottery games.
A BILL FOR AN ACT
Relating to the Oregon State Lottery; amending ORS 461.300.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 461.300 is amended to read:
461.300. (1) { + For the purpose of prohibiting the operation
of casinos in this state, the Director of the Oregon State
Lottery shall:
(a) Determine whether an establishment of a lottery game
retailer or applicant operates as a casino, or will operate as a
casino after the Oregon State Lottery enters into a contract with
the lottery game retailer or applicant.
(b) Terminate the contract with a lottery game retailer, or
refuse to enter into a contract with an applicant, found to be
operating a casino.
(2) In addition to the requirements imposed by administrative
rule of the Oregon State Lottery Commission, an establishment is
deemed conclusively to operate as a casino when 50 percent or
more of the annual net income of the establishment, or the
projected annual net income of the establishment of an applicant,
is derived from the sale of tickets or shares in lottery games.
(3) The commission shall adopt rules establishing a process for
reviewing the operation of the establishments of lottery game
retailers, or of applicants, to ensure that the establishments do
not operate as casinos.
(4) + } The { - Oregon State Lottery - } commission shall
adopt rules specifying the terms and conditions for contracting
with lottery game retailers so as to provide adequate and
convenient availability of tickets or shares to prospective
buyers of each lottery game as appropriate for each such game.
Nothing in this subsection is intended to preclude the lottery
from selling tickets or shares directly to the public.
{ - (2)(a) - } { + (5)(a) + } The director { - of the
Oregon State Lottery - } shall, pursuant to this chapter
{ - , - } and the rules of the commission, select as lottery
game retailers such persons as deemed to best serve the public
convenience and promote the sale of tickets or shares. A person
under the age of 18 may not be a lottery game retailer. In the
selection of a lottery game retailer, the director shall consider
factors such as financial responsibility, integrity, reputation,
accessibility of the place of business or activity to the public,
security of the premises, the sufficiency of existing lottery
game retailers for any particular lottery game to serve the
public convenience and the projected volume of sales for the
lottery game involved.
(b) Except when the director recommends, and the commission
concludes, that it is reasonable and prudent to waive disclosure
requirements under this section and that to do so will not
jeopardize the fairness, integrity, security and honesty of the
lottery, prior to the execution of any contract with a lottery
game retailer, the lottery game retailer shall disclose to the
lottery the names and addresses of the following:
(A) If the lottery game retailer is a corporation but not a
nonprofit private club as described in ORS 471.175, the officers,
each director who owns or controls three percent or more of the
voting stock and each stockholder who owns 10 percent or more of
the outstanding stock in such corporation.
(B) If the lottery game retailer is a trust, the trustee and
all persons entitled to receive income or benefit from the trust.
(C) If the lottery game retailer is an association but not a
nonprofit private club as described in ORS 471.175, the members,
officers and directors.
(D) If the lottery game retailer is a subsidiary but not a
nonprofit private club as described in ORS 471.175, the officers,
each director who owns or controls three percent or more of the
voting stock and each stockholder who owns 10 percent or more of
the outstanding stock of the parent corporation thereof.
(E) If the lottery game retailer is a partnership, joint
venture or limited liability company, all of the general
partners, limited partners, joint venturers, members of a limited
liability company whose investment commitment or membership
interest is 10 percent or more, and managers of a limited
liability company.
(F) If the parent company, general partner, limited partner,
joint venturer, stockholder, member or manager of a limited
liability company is itself a corporation, trust, association,
subsidiary, partnership, joint venture or limited liability
company, then the director may require that all of the
information required by this paragraph be disclosed for such
other entity as if it were itself a lottery game retailer to the
end that full disclosure of ultimate ownership be achieved.
(G) If any member, 18 years of age or older, of the immediate
family of any video lottery game retailer, or any member, 18
years of age or older, of the immediate family of any individual
whose name is required to be disclosed under this paragraph, is
involved in the video lottery game retailer's business in any
capacity, then all of the information required in this paragraph
shall be disclosed for such immediate family member as if the
family member were a video lottery game retailer.
(H) If any immediate family member, 18 years of age or older,
of any lottery game retailer, other than a video lottery game
retailer, or of any person whose name is required to be disclosed
under this paragraph is involved in the lottery game retailer's
business in any capacity, then the lottery game retailer shall
identify the immediate family member to the Oregon State Lottery,
and shall report the capacity in which the immediate family
member is involved in the lottery game retailer's business if
requested by the director. Full disclosure of immediate family
members working in the business may be required only if the
director has just cause for believing the immediate family member
may be a threat to the fairness, integrity, security or honesty
of the lottery.
(I) If the lottery game retailer is a nonprofit private club as
described in ORS 471.175, the treasurer, officers, directors and
trustees who oversee or direct the operation of the food,
beverage, lottery or other gambling-related activities of the
nonprofit private club and each manager in charge of the food,
beverage, lottery or other gambling-related activities of the
nonprofit private club.
(J) Any other person required by rule of the commission.
(c) Any person required to disclose information under paragraph
(b) of this subsection shall disclose additional information for
retail contract approval that the director determines to be
appropriate.
(d) The commission may refuse to grant a lottery game retail
contract to any lottery game retailer or any natural person whose
name is required to be disclosed under paragraph (b) of this
subsection, who has been convicted of violating any of the
gambling laws of this state, general or local, or has been
convicted at any time of any crime. The lottery may require
payment by each lottery game retailer to the lottery of an
initial nonrefundable application fee or an annual fee, or both,
to maintain the contract to be a lottery game retailer.
(e) A person who is a lottery game retailer may not be engaged
exclusively in the business of selling lottery tickets or shares.
A person lawfully engaged in nongovernmental business on state or
political subdivision property or an owner or lessee of premises
which lawfully sells alcoholic beverages may be selected as a
lottery game retailer. State agencies, except for the state
lottery, political subdivisions or their agencies or departments
may not be selected as a lottery game retailer. The director may
contract with lottery game retailers on a permanent, seasonal or
temporary basis.
{ - (3) - } { + (6) + } The authority to act as a lottery
game retailer is not assignable or transferable.
{ - (4) - } { + (7) + } The director may terminate a
contract with a lottery game retailer based on the grounds for
termination included in the contract or commission rules
governing the contract. The grounds for termination must include,
but are not limited to, the knowing sale of lottery tickets or
shares to any person under the age of 18 years or knowingly
permitting a person under the age of 21 years to operate a video
lottery game terminal.
{ - (5) - } { + (8) + } Notwithstanding subsection
{ - (4) - } { + (7) + } of this section, when a lottery game
retail contract requires the lottery game retailer to maintain a
minimum weekly sales average, the lottery game retailer may avoid
termination of the contract for failure to meet the minimum
weekly sales average by agreeing, prior to termination, to pay
the state lottery the difference between the actual weekly cost
incurred by the lottery to maintain the contract and the weekly
proceeds that are collected by the lottery from the sales of that
lottery game retailer, less expenses that are dedicated by
statute, rule or contract to other purposes. The director may not
terminate the contract of a lottery game retailer for failure to
meet a minimum weekly sales average unless the director first
allows the lottery game retailer an opportunity to make the
payment described in this subsection.
{ - (6) - } { + (9) + } The commission shall adopt by rule
an alternative dispute resolution process for disputes arising
from a contract with a lottery game retailer that must be
included in every contract between the commission and lottery
game retailers. The commission shall develop the dispute
resolution process required by this section in conformity with
ORS 183.502.
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